An Introduction to Islamic Finance: Theory and Practice

(Romina) #1

FIGURE 14.1


Key drivers of regulatory change for fi

nancial institutions

Source: Portilla (2009)

Financial Institutions

Accounting

Fair ValueMeasurement

Loan LossProvisioning

Securitizationand Off-

BalanceSheet GlobalCoordination

and
Convergence

OTC
Derivatives

Fair ValueMeasurement

CentralClearingHouses

Compensation

Guidelineson

Risk
Alignment andGovernance

Potential Linkto CapitalConservation

ShareholderSay on Pay Deferrals andClawbacks

Securitization

Skin-in-the-

Game

UnderwritingStandards

Capital
Requirements

DisclosureRequirements

Registration RatingAgencies Standards
Bank Capital

Quality ofCapital

RaisingMinimumRatio

Counter-CyclicalBuffer

LeverageRatio

SystemicallyImportant

Firms

Transparency& Disclosure

CapitalSurchargeson Size

Living Wills

Cross-BorderResolutionRegimes


IncreasedOversight

Simplificationof Structure

Liquidity

Liquid AssetBuffers

CentralBankFacilities

Ringf encing

Funding

2

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